10/09/2024 - Here is a new BUY breakout chosen mechanically:10/09/2024 - Here is a new BUY breakout chosen mechanically:
Stop @ $246.84
Entry @ $272.64 or greater
Target @ $315.48
CDS trade ideas
Bullish setup in CadencaSee chart attached. Price seems to have finished the downward correction. If the last daily highs get broken my buy stop limit gets triggered. I expect to ride this upward move until the next earnings in CDNS.
7/21/24 - $cdns - Staying on the sidelines into print7/21/24 :: VROCKSTAR :: NASDAQ:CDNS
Staying on the sidelines into print
- almost 50x PE for growing 20% this year and next. that's just too expensive for my taste.
- fcf yield (round up about 2%) growing 20% is reasonable and no dilution issue - but certainly not cheap
- suffering on it's nasdaq pair (as are all semis)
- I think the semi factor is what keeps me most concerned. good prints are getting dumped. what happens if there's a mediocre print nevermind a miss (not my base case).
- technically broke support on the 200d not good if we can't hold above it. even a beat probably retests these recent lows at some pt later in the year.
- just don't see the r/r for punting here.
have a good week my fam. i'll comment on as much as i can as EPS boots off but will be in nashville for the btc event. back at my seat next week.
V
Cadence Design Systems (CDNS) AnalysisTechnological Advancements and Market Position:
Cadence Design Systems NASDAQ:CDNS is well-positioned for growth due to recent technological advancements and its strategic market position. The launch of the Millennium M1 supercomputer, likely powered by Nvidia GPUs, is expected to enhance Cadence's stock value.
Leadership in Semiconductor Design Software:
As a leader in semiconductor design software, Cadence dominates the Electronic Design Automation (EDA) sector alongside Synopsys. Cadence's superior financial health and profit margins provide a competitive edge, allowing it to further strengthen its market dominance while Synopsys integrates recent acquisitions.
CEO Insights and Strategic Vision:
CEO Anirudh Devgan highlighted exceptional 2023 results driven by innovative solutions and the Intelligent System Design strategy, emphasizing opportunities in AI and 3D-IC technologies.
Investment Outlook:
Bullish Outlook: We maintain a bullish stance on CDNS above the $285.00-$288.00 range.
Upside Potential: With an upside target set at $400.00-$405.00, investors should consider Cadence's technological leadership, strong financial position, and strategic growth initiatives as key drivers for potential stock appreciation.
📊🖥️ Stay updated on Cadence Design Systems for promising investment opportunities! #CDNS #SemiconductorDesign 📈🔍
Resistance Level Break outA break out to the upside of the resistance level may signal a trend reversal.
Cadence Design Systems Stock Slides On Weak Q2 GuidanceCadence Design Systems ( NASDAQ:CDNS ), a San Jose-based electronic design automation software manufacturer, has released its first-quarter financial results. The company reported adjusted earnings of $1.17 per share on sales of $1.01 billion, beating FactSet's estimated earnings of $1.13 per share on sales of $1 billion. However, compared to the same period last year, the company's earnings fell by 9%, while sales decreased by 1%. This marks the company's first quarterly sales decline in more than eight years and the first decline in earnings on a year-over-year basis in nine quarters.
Despite the positive first-quarter results, Cadence's ( NASDAQ:CDNS ) second-quarter guidance is below expectations. The company is forecasting adjusted earnings of $1.22 per share on sales of $1.04 billion, below analysts' predictions of $1.43 per share on sales of $1.11 billion. In the year-ago period, the company earned adjusted earnings of $1.22 per share on sales of $977 million.
Cadence's CFO, John Wall, stated that the company had achieved a record Q1 backlog of approximately $6 billion, and the company had made two major acquisitions in the first quarter. On January 8th, Cadence ( NASDAQ:CDNS ) announced its acquisition of Invecas, a provider of design engineering, embedded software and system-level solutions, while on March 5th, the company announced its plan to purchase BETA CAE Systems International, a system analysis platform provider of multi-domain, engineering simulation solutions, for $1.24 billion.
In response to Cadence's Q2 guidance, NASDAQ:CDNS stock plummeted by 9.3% to $258.60 in after-hours trading but shortly surged by 1.7% in Pre-market trading on Tuesday. The company's full-year outlook remains positive, with adjusted earnings of $5.93 per share on sales of $4.59 billion, matching FactSet's estimates. Last year, Cadence ( NASDAQ:CDNS ) earned adjusted earnings of $5.15 per share on sales of $4.09 billion.
The stock has a Relative Strength Index (RSI) of 35.30 siting weak momentum from ( NASDAQ:CDNS ) stock
CDNS a chip design software company LONGCDNS located in California is a software firm supporting computer assisted design ( ACAD) for
the semi-conductor industry. While its customer base gets the headlines, this company helps
make it happen. The 120 minute chart looks good as price is uptrending with good volume
and relative strength. Earnings have been solid and another is around the corner. Price has
appreciated 40% in six months. the trend angle of 13 degrees over the continuous uptrend
is solid. I see this as a buy now before the earnings or after a minor correction to get a bit of
a discount.
CDNSCadence Design Systems, Inc., headquartered in San Jose, California, is an American multinational computational software company, founded in 1988 by the merger of SDA Systems and ECAD, Inc.
Potential swing long.
CDNS: healthy correction?A price action below 271.00 supports a bearish trend direction.
Crossing below 267.00 will trigger further support for the short-sell position.
The target price is set at 256.00 (its 38.2% Fibonacci retracement level).
The stop-loss is set at 282.00 (just above the full retracement).
A "healthy correction" in the stock market typically refers to a short-term decline in stock prices that is considered normal and even beneficial for the overall health of the market
Potential Short on CDNS
CDNS is currently in an ascending wedge with bearish RSI divergence. Look for a break of trend on smaller timeframe for entry, SL above last swing high, moving SL to BE when safe to do so.
CDNS - Short Setup Looking for a break below 221.93, potential stop signal above 230.23, potential target 1: 201.53 (200sma) target 2: 152.23 // Insider selling during June July and August. (Disclosure : I own Sep $230 Puts in CDNS currently)
CDNS Entry, Volume, Target, StopEntry: with price above 239.90
Volume: with volume greater than 3.32M
Target: 257.5 area
Stop: Depends on your risk tolerance; Based on an entry of 239.91, a stop of 232.84 gets you 3/1 Reward to Risk Ratio.
This swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
Cadence Design Systems(CDNS-Q)They make software that helps semis companies design their chips. Is up 382% in the past 5 years, outperforming the market. Up 27% YTD even after pulling back the past month.
CDNS - Similar W Continuation PatternsIntitial W is the same yet a little bit smaller
It provided a lane for price to extend a lot during the right arm of the W
The second one is currently experiencing the right arm of the W and looks to extend like the first
Bullish fractal
Sell CDNS May call spread 210/220 for 3.15 creditPost ER play, not expecting to cross previous highs due to low volume lower close on 04/25
CDNS Break Out$CDNS broke through supply with volume before retesting on decreasing volume. The large red candle after earnings is slightly concerning. Watching for a continuation with strength.
$CDNS with a Neutral outlook following its earnings #Stocks The PEAD projected a Neutral outlook for $CDNS after a Negative Under reaction following its earnings release placing the stock in drift D with an expected accuracy of 33.33%.
$CDNS with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $CDNS after a Positive Under reaction following its earnings release placing the stock in drift A with an expected accuracy of 60%.
CDNS - Bull and Bear Scenarios 4Hr Chart for CDNS
The red hammer suggests the two points are comparable, and we are headed for a downward move
The second scenario is that the middle green line hodls and price continues up through the higher triangle area
Orange line emphasizes the bear scenario trend line
CDNS: double top pattern?The 200-day simple moving average acted as some major resistance.
A price action below 159.50 supports a bearish trend direction.
Further bearish trend support below 158.00.
Consolidation price range from 151.50 to 157.00
Crossing below 151.50 might target 146.00.
Crossing above 157.00 will be the first sign of pending strength.
$CDNS under accumulation, approaching buy point$CDNS showing classic signs of being under accumulation, with a six month base, multiple pocket pivots and an up/down ratio of 1.43 - it has an acc/dis rating of A- on IBD and features in the top 50, with a composite rating of 96. Definitely worth keeping on watch for a break over $168.83
RectangleThere is also an ABC bullish pattern inside the rectangle. The target for this pattern is D. As a rule, price will reverse when it hits D if the pattern makes it to D.
There is resistance from the upper trendline of the rectangle. In order for price to see full realization of the ABC bullish pattern, the upper trendline of the rectangle will need to be broken.
Rectangles are neutral patterns without a break of a trendline.
Retests of the trendline are common.
The top and bottom trendlines are marked.
No recommendation
WATCH $CDNSBearish
Fundamental
- High PE
- Negative PEG ratio
- Weak industry group
TA
- Bearish momentum divergence
- Momentum diving
- Broke down trend line
- Rejected retest
- Rejected fibo
- Strong supper / resistance at POC level
